Originally Posted By: Miller88
Originally Posted By: Hokiefyd
Originally Posted By: Miller88
It's great for the banks!
Banks generally don't play any part in 0% loans; there is no interest on a 0% loan, by definition, so there's no money to be made. Automakers offer 0% loans through their own financial institutions to drive sales. Banks are really not involved here.
I can't imagine they are doing 7 year loans with 0% interest. Honda's finance division is making a killing on 7 year loans.
I was quoted 2.39% for an 84 month loan from Lightstream, only for those with good credit. Sign and the money would be wired into my account. Discover wants me to take a $25k signature loan for around 2%.
Enjoy it while it lasts, we will see double digit interest rates within our lifetimes.
Than paying cash for a car will make lots of sense, and those of use who saved our cash can enjoy 10% returns on savings while making the last few payments on our 84 month loans @2%...lol.
Here is some more sophisticated financial advice, when money is cheap leverage, when money is expensive don't.
If you look at really wealthy people like our congress for example since they have to publish some financials you will see people with seven, eight, or nine figure net worth's with mortgages and other fairly large loans. Why? Money is cheap right now. Why take $5m out of a bunch of solid stocks to buy a beach house in the Cape when you can get a note for under 5%?